Used Car Scams And How to Avoid Them

Automobile

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If you are in the market for a pre-owned vehicle, you should be wary of unscrupulous dealers and private sellers who may attempt to defraud you. Curbstoning, odometer rollbacks, title washing, VIN cloning, and lowballing are some ways that someone might take advantage of you. A guy in the driver’s seat inspects a vehicle at the dealership while wearing a blue shirt.

Several companies sell old cars and offer used cars for sale at very reasonable prices. You might fall prey to a dodgy dealer or individual seller if you are not vigilant.

Curbstoning, title cleaning, odometer rollbacks, VIN cloning, and lowballing are typical used automobile frauds. While some fraudsters’ schemes may be explicit, others need extensive investigation to expose.

How to Recognize Car Scams And How to Avoid Them

Although these are not the only methods unscrupulous merchants and individual sellers may use to defraud you, they are among the most prevalent. Here is what they are and how you can recognize them.

1. Curbstoning

Suppose you wish to purchase and sell automobiles as a company. In that case, you are generally needed to acquire a dealer license, which requires you to adhere to specific restrictions, such as lemon laws that protect customers against dealers who sell faulty vehicles.

Curbstoning is a fraud that some dealers may employ to sell you a faulty vehicle by appearing as a private seller to circumvent these regulations. As the name implies, they often greet you at the curb in front of a private property or an empty parking lot.

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In some circumstances, a private person may purchase damaged automobiles to resell them for a profit without the necessary dealer license. Please verify that the title is in the seller’s name to prevent being a victim and purchasing a malfunctioning vehicle for more than it is worth. Alternatively, they may attempt to prevent a paper trail that goes back to them. There are several used cars for sale in different second-hand car companies that you can choose to purchase as some of these companies have a perfect image in the market.

2. Title Cleaning

If a car has been declared a complete loss, has flood damage, has liens, or has any other negative concerns, this information should be recorded on the title. Nonetheless, some con artists erase negative information unlawfully by modifying the title or transporting the car beyond state borders where a particular brand is not recognized.

If you are not cautious, you may purchase a damaged or malfunctioning automobile for more than it is worth. Obtain the car history report, which should include a list of brands and other title-related issues. Consider calling your insurance provider with the vehicle identifying number (VIN) to see whether it has records on the car.

3. Odometer Rollbacks

The National Highway Traffic Safety Administration (NHTSA) reports that 450,000 automobiles with falsified odometer readings are sold each year. This fraud may seem like a remnant from when odometers were analogue, yet 450,000 vehicles with phoney odometer readings are sold annually.

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To detect a rollback, employ a mechanic to check the car for tampering and wear and tear that does not match the reported mileage.

You may also request to examine the original title, which will have the vehicle’s mileage, or the vehicle history report, which may provide the vehicle’s mileage when specific events, such as servicing appointments and past sales, are recorded.

4. The Cloning of VINs

You may use the VIN to learn about the vehicle’s history, monitor prospective recalls, register the vehicle, and more. VIN cloning happens when a con artist attempts to sell a stolen vehicle or a vehicle with a salvaged title by removing the VIN plate or etching from the vehicle and replacing it with one from a lawfully registered vehicle with the same attributes.

If you purchase a vehicle with this issue and it is found, the vehicle may be repossessed and returned to the original owner, or you may get a faulty vehicle. Do more than just purchase a used one by seeing good advertisements like used cars for sale etc. Still, you can use the above information as a guide for the inspection and test drive. The VIN is located on the driver-side dashboard and inside the driver-side door. Examine if the two are identical and whether there is an indication of manipulation. Additionally, obtain the original title to determine if the VINs match.

5. Lowballing

It is common for auto purchasers to attempt to lowball sellers immediately. Still, if a seller tries to get rid of a car for a price significantly below its genuine worth, it might be a symptom of one of the scams.

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Sellers may claim they are prepared to accept a lower price because they want to get rid of the item or do not need the money. They may even state that it was involved in a minor collision but offer no more information. In many of these instances, they may hope the low price would prevent you from asking more questions.

Read More: Five Main Misconceptions When Buying a Used Car

How to Buy A Used Car Securely?

Due to the prevalence of scams, it is essential to safeguard yourself and your money. Thankfully, there are a few actions you may take to avoid the majority of scams:

Request The Vehicle’s History Report

For the convenience of prospective customers, many private dealers will order one. If they refuse, get a VIN and a license plate. Considering various automobiles, you may save money by purchasing multiple reports from the same firm.

Employ A Mechanic

A pre-purchase examination typically costs between $100 and $200, but it might save you thousands of dollars if the mechanic discovers a significant fault the seller attempted to hide.

Confirm The Seller’s Account

Using the original title and car history record, you may often get sufficient evidence to confirm that the seller’s narrative is accurate. Use a cashier’s check to pay. A cashier’s check needs the recipient’s legal name, so if you become a victim of fraud, you will have this information. Avoid cash transactions because they lack a paper trace.

Conclusion

If you fall victim to one of their schemes, it may be hard to retrace them if they have disguised their tracks so well. Consequently, you must be cautious when purchasing a used automobile, especially from a private seller. Report the incident to the police and call your local department of motor vehicles, which may be able to assist you.